Prosperity & Poverty

Sustainability Goals

Rising wages and income equity for all genders and races raises the standard of living for workers, which can further accelerate economic growth. The poverty rate is low and support services help those most in need.

Income and Wages

Median household income is one way to measure income of residents in the county: half of households earn more than the median income and half earn less. It’s considered a more reliable indicator than the average income because it is less likely to be skewed by outlier data, such as unusually high or low incomes.

San Mateo County’s median household income rose 4% in 2016.

California saw a rise in median household income of approximately 2% in 2016, while the national median income remained approximately the same after adjusting for inflation.

The distribution of income in San Mateo County changed considerably from 2007 to 2017. In 2007, 59% of county households had income under $99,000; by 2016, this percentage decreased to 46%.

Average Weekly Wages

Average weekly wages track wages paid by employers in San Mateo County and include other compensation such as stock options and bonuses. Unlike median household income, average weekly wage data are more likely to be skewed by unusually large or small values.

Average weekly wages grew by 31% in 2012, reaching a record high of $2,057, driven by increased wages in the Financial Activities and Professional and Business Services industry segments.

The average wages for several types of service jobs are listed below (monthly/annually). For many, the median asked rent ($2,684 for a 1 bedroom and $3,318 for a 2 bedroom) is half a month’s wage.

Chefs and Head Cooks: $4,451 / $53,412

Computer Programmers: $8,852 / $106,234

Elementary School Teachers: $5,823 / $69,883

Financial Analysts: $11,006 / $132,069

Forest and Conservation Technicians: $3,190 / $38,805

Legislators: $5,743 / $68,919

Paramedics and EMTs: $4,695 / $56,336

The Information sector includes all forms of publishing, broadcasting, telecommunications, and data processing industries. It has consistently produced the highest annual average weekly wages in the county since 2013. However, wages for this sector decreased by 26% in 2016 compared with the prior year.

In 2016, the Financial sector experienced a 14% increase in annual weekly wages compared with 2015, the largest increase among the six sectors.

Lagging wages in the Education and Health Services, Leisure and Hospitality, and Trade, Transportation and Utilities sectors contribute to rising income inequality within the county.

Rising Wages

To address the increased cost of living in 2014, California raised its minimum wage from $8/hour to $9/hour, and increased again in 2016 to $10/hour. Meanwhile, San Francisco supervisors passed an ordinance to increase the minimum wage from $10.74 to $15/hour by 2018. In 2016, the San Mateo City Council increased the minimum wage within the city limits to $15 per hour. The ordinance will reach full implementation by 2019, with an extension for nonprofit organizations. At least 25% of low-wage workers in the city earn less than $15 per hour as of 2015. Beginning in 2020, the San Mateo City Council will adjust the minimum wage each year to match the cost of living in accordance with the Regional Consumer Price Index.

Poverty

The decrease in poverty in San Mateo County is due to an increase in median income and displacement of the working poor outside of the county (Urban Habitat).

Between 2015 and 2016, most of the counties in the Bay Area experienced a decrease in poverty, with the exception of Napa and Santa Clara Counties.

The San Mateo County poverty rate for families with children decreased by 7.6% between 2015 and 2016, and the poverty rate for single, female headed families decreased by 30%.

The Federal Poverty Level (FPL) is the annual income required to meet basic needs. Adjusted annually for inflation, the FPL does not account for local variations in the cost of living and therefore underestimates the number of people living in poverty in expensive areas like San Mateo County.

Alternative Measure for Poverty

The Self-Sufficiency Standard (SSS) calculates the income required to meet basic needs (without public or private assistance). Unlike the FPL, it accounts for local costs of living such as housing, childcare, healthcare, and transportation. In 2014, the SSS for a family of four in San Mateo County required an annual income of $85,090 to meet basic needs without public or private assistance, considerably higher than the FPL of $23,850. The SSS annual income for the county is equivalent to two adults earning an hourly wage of $20.14. According to the Insight Center for Economic Development, 55,242 households in the county (29% of total households) had incomes below the Self-Sufficiency Standard, while nearly 42% of county households with children had income below the SSS.

Sponsors

Platinum
Pacific Gas and Electric Company
County of San Mateo
City of Brisbane
City of San Carlos
City of San Mateo
City of South San Francisco

Gold
Town of Colma
City of Foster City
Town of Portola Valley

Silver
Town of Atherton
City of Belmont
City of Burlingame
City of East Palo Alto
City of Half Moon Bay
City of Menlo Park
City of Millbrae
City of Pacifica
City of Redwood City
MindSource
Town of Hillsborough

Fall Event Sponsors
Sequoia Healthcare District
Whole Foods Market

From the 2017 Indicators Report

Between 2010 and 2015, the average rental cost rose by 49% and the median house sale price rose by 52% in San Mateo County.

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Quotable Quote

‟We understand the triple bottom lines of sustainability must all be addressed for us to be successful.”—William Clay Ford, Chairman, Ford Motor Company